Essay About Lycoming Electric Company And Rail System

The Lycoming Electric Company – Lab Report – Jaynil Ashar
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The Lycoming Electric Company
The Lycoming Electric Company, Pennsylvania, USA, is contemplating a new
generating plant along the Susquehanna River because of increased electric power
demand in that region. According to the president and manager of Lycoming Electric,
Traci Shannon, “We've had very little problem finding the appropriate location for the
plant along the river. However, since we rely on the burning of coal to produce the
electricity, and since there is no possibility of using the river flow to generate electricity
because of its current and speed, our biggest problem lies in determining the mode of
transportation to use in acquiring the needed coal.”
According to its planning department, Lycoming Electric will need 3,000 tons of coal per
year in its plant. Grenoble, logistics manager, presented to Ms Shannon the feasible
systems available to transport such a large amount of coal to the new plant (see exhibit).
According Mr. Grenoble, “The rail system will result in a lower cost, but the actual
transportation costs will be higher than in barge system because ordering in large lots will
reduce the amount of necessary orders. Administrative costs for the rail system will be
higher due to the addition of an extra manager to handle necessary paperwork and other
duties. The fixed cost for the rail system will include a rail siding, unloading equipment,
and a conveyor system to get the coal inside the plant. When comparing these two
systems to determine which is most suited to our plant facility and overall efficiency, we
must make our decision not on total cost alone but on how each system will contribute to
our overall profitability.”
The Lycoming Electric Company, Pennsylvania, USA, is contemplating a new
generating plant along the Susquehanna River because of increased electric power
demand in that region. According to the president and manager of Lycoming Electric,
Traci Shannon, “We've had very little problem finding the appropriate location for the
plant along the river. However, since we rely on the burning of coal to produce the
electricity, and since there is no possibility of using the river flow to generate electricity
because of its current and speed, our biggest problem lies in determining the mode of
transportation to use in acquiring the needed coal.”
According to its planning department, Lycoming Electric will need 3,000 tons of coal per
year in its plant. Grenoble, logistics manager, presented to Ms Shannon the feasible
systems available to transport such a large amount of coal to the new plant (see exhibit).
According Mr. Grenoble, “The rail system will result in a lower cost, but the actual
transportation costs will be higher than in barge system because ordering in large lots will
reduce the amount of necessary orders. Administrative costs for the rail system will be
higher due to the addition of an extra manager to handle necessary paperwork and other
duties. The fixed cost for the rail system will include
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“The Lycoming Electric Company” EssaysForStudent.com. 07 2018. 2018. 07 2018 < "The Lycoming Electric Company." EssaysForStudent.com. EssaysForStudent.com, 07 2018. Web. 07 2018. < "The Lycoming Electric Company." EssaysForStudent.com. 07, 2018. Accessed 07, 2018. Essay Preview By: Jaynil Ashar Submitted: July 27, 2018 Essay Length: 745 Words / 3 Pages Paper type: Lab Report Views: 425 Report this essay Tweet Related Essays Benchmark Pacific Gas & Electric Company (pg & E) Pacific Gas & Electric Company (PG & E) After emerging from bankruptcy following California energy crisis in late 2000, Pacific Gas and Electric Company (PG&E) 818 Words  |  4 Pages Pacific Gas and Electric Company Business Regulation Stimulation Pacific Gas and Electric Company (PG&E), is a utility which provides natural gas and electricity to most of Northern and Southern California. In 1993, PG&E 1,395 Words  |  6 Pages Profile Management of Abc Electric Company ABC Electric Company ABC Electric has been in business since 1970. The company makes hand-held arc welders its primary customers are construction firms, shipbuilders, auto-repair 1,292 Words  |  6 Pages Lycoming Electric Company Case study - Lycoming Electric Company 1. If you were the logistics manager of Lycoming Electric, which system would you advise Ms Shannon to initiate? 484 Words  |  2 Pages Similar Topics Foxmeyer Drug Company Case Nakamura Lacquer Company Get Access to 89,000+ Essays and Term Papers Join 209,000+ Other Students High Quality Essays and Documents Sign up © 2008–2020 EssaysForStudent.comFree Essays, Book Reports, Term Papers and Research Papers Essays Sign up Sign in Contact us Site Map Privacy Policy Terms of Service Facebook Twitter